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(13 points) APY is a(n) ____.

A. noncompounding interest rate

B. daily interest rate

C. interest rate advertised by lenders

D. interest rate advertised by borrowers

User Davidbrcz
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1 Answer

3 votes

Answer:

C. interest rate advertised by lenders

Step-by-step explanation:

APY stands for Annual percentage yield. It is the rate at which deposits earn interest in a checking or savings account. In other words, APY represents the amount of interest a deposit earns for one year when in a bank account.

The APY is a standardized presentation of interest to be earned. It incorporates all considerations, such as the compounding effect. APR makes it possible to compare expected returns from various financial instruments or institutions.

User Marc Intes
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